April 25, 2005, Taipei, Taiwan – China Airlines and Air China
will cooperate on a joint mileage program beginning on May 1,
2005. Starting in May, members of China Airlines Dynasty Frequent
Flyer Program can accumulate mileage in their accounts when
traveling on Air China. At the same time, members of Air China’s
Companion Frequent Flyer Program can enjoy the same benefits when
traveling on China Airlines flights. The accumulated mileage can
be used to redeem for free tickets and upgrades. The cooperation
covers all the routes operated by China Airlines and Air China.

Passengers taking China Airlines flights from Taiwan, and then
transferring to Air China, will be able to accumulate mileage on
the whole trip, making it easier to accumulate air miles and
redeem. For Taiwanese passengers traveling to China, China
Airlines provides services from Taipei and Kaohsiung to Hong Kong,
and from Hong Kong, Air China provides flights to Beijing, Tianjin,
Hangzhou, Dalian, Chongqing, Chengdu and Guiyang.

This is CAL’s second cooperation on a mileage program across
the Taiwan Strait, after it began cooperating with China Eastern
Airlines last year. China Airlines is also negotiating further
mileage program cooperation with additional mainland Chinese
carriers.

There are more than 1.6 million members in CAL’s Dynasty
Flyer Program. With 15,000 miles, members of the Dynasty Flyer
Program can exchange for seat upgrades on regional flights. There
are more than 2 million members in Air China’s Companion
Frequent Flyer Program, and its members can get upgrades on
domestic flights with only 3,000 kilometers.